The Securities and Exchange Commission (SEC) in the United States has once again delayed its decision on the listing of spot Bitcoin exchange-traded funds (ETFs). This comes despite pleas from US Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres to immediately approve the ETFs. The SEC also postponed its decision on spot Ether ETFs from VanEck, ARK 21Shares, and GlobalX, as well as spot Bitcoin ETF applications from Invesco, Bitwise, and Valkyrie.
The delays came earlier than expected, as many applicants were anticipating a decision by October 16-19. It is speculated that the timing of the delays may have been influenced by the narrowly avoided US government shutdown, which would have disrupted financial regulators and federal agencies.
Bitwise Asset Management, one of the applicants, responded to the delay by submitting an amended application that addressed the SEC’s objections to the product. The amended application focused on the academic record regarding the lead-lag relationship between BTC futures and spot markets.
In other news, a Chinese court, the Shanghai No.2 Intermediate People’s Court, recognized Bitcoin as a unique and non-replicable digital asset. The court acknowledged the scarcity and inherent value of Bitcoin, stating that it stands out from other digital currencies due to its key currency features.
Meanwhile, Taiwan’s Financial Supervisory Commission formulated guidelines for regulating the country’s cryptocurrency market. The guidelines include rules such as separating exchange treasury assets from customer assets and requiring foreign virtual asset service providers to register with the regulator before offering their services in Taiwan.
In Hong Kong, the Securities and Futures Commission (SFC) announced that it will publish a list of licensed and unregulated virtual asset trading platforms (VATPs) to help the public identify potentially unregulated platforms. This decision comes in the wake of the JPEX crypto exchange scandal, described as one of the worst cases of financial fraud in the region. JPEX is accused of promoting its services to Hong Kong residents without obtaining a license.
The delays in ETF decisions and the recognition of Bitcoin as a digital asset highlight the ongoing debate and regulatory challenges surrounding cryptocurrency. As governments and regulators grapple with these issues, it remains to be seen how the future of digital currencies will be shaped.
